Local governments can engage directly with their electric utilities—whether investor-owned utilities, municipal utilities, or electric cooperatives—to align utility programs, planning processes, and investment decisions with community energy priorities.
Engaging with Electric Utilities
Applicability:
Primarily local governments served by regulated utilities (i.e., those without access to retail choice In states where it has been authorized, electric retail choice provides customers the right to procure energy from competitive electricity suppliers other than their traditional utilities. ).
What?
Why?
As the electricity suppliers for many local governments, regulated electric utilities are often key stakeholders in municipal or community renewable energy strategies. Depending on state law, an incumbent utility can sometimes be the only source from which local governments and surrounding communities can procure renewable energy. Moreover, utilities are responsible for implementing state and federal energy regulations and requirements. This can include vital tasks like procuring or building new energy resources, managing grid capacity and interconnection processes, and developing customer programs on energy efficiency or renewables.
Since local governments are generally large electricity consumers in their own right and can act as representatives of their communities, they are well positioned to participate in planning discussions and help ensure that utility investments and programs reflect local needs and goals. Engagement with utilities can also help local governments better understand project timelines, costs, and feasibility constraints tied to system planning and infrastructure.
How?
Local governments can meet with their utilities individually or convene larger groups which include representatives from other communities. They may also engage with utilities through planning processes such as Integrated Resource Plans (IRPs), franchise agreement negotiations, program design cycles, or data-sharing initiatives to better understand system constraints and identify opportunities for alignment.
Some local governments have chosen to formalize their relationships with their utilities through partnership agreements. These agreements, often created through memoranda of understanding (MOU), outline the clean energy goals of both parties and identify how they will coordinate planning, data sharing, and program implementation to support shared objectives.
Local governments may also engage informally by participating in utility-hosted meetings, coordinating with peer cities, or working collaboratively with utilities on program development and implementation efforts. Coordinating with other communities can help local governments share resources, identify common priorities, and amplify their voice in utility planning processes. Early engagement particularly during planning and program development cycles can help ensure local priorities are reflected in utility decision-making.
Resources
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This resource highlights how cities can use franchise agreement negotiations to better align utility actions with local clean energy, equity, and resilience goals.
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This World Resources Institute paper outlines opportunities for cities to utilize partnership agreements with their utilities to achieve their energy goals and identifies common elements, considerations, and suggestions. This paper also includes links to examples of city-utility partnerships entered into by Minneapolis, MN; Sarasota, FL; Charlotte, NC; Salt Lake City, UT; Denver, CO; and Madison, WI (see Appendix A).
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This World Resources Institute paper explores the potential to create greater alignment between utilities and their customers to deliver more transformation across the electricity system at a lower cost. To support this process, the paper illustrates how IRP requirements and practices vary across states and utilities, including how they incorporate stakeholder input. It also breaks down the major steps and elements of IRPs to help customers understand how they can engage.
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This report provides guidance on how local governments and community partners can work with utilities to deploy solar and storage projects, with a focus on coordination, program design, and implementation.
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This report provides a step-by-step guide for effective initial engagement with rural communities to support long-term collaboration for project development, with a focus on preparation, initial outreach, and collaboration on preferred engagement structure.
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This resource provides insights into how well-designed Community Benefit Plans can improve alignment, reduce friction, and support smooth implementation.
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This article provides guidance on how to use clear metrics to strengthen engagement processes and benefit outcomes.
Examples
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Some municipally owned utilities establish advisory groups or committees to gather input from local governments and community stakeholders on issues such as rate design, system planning, and program development. For example, CPS Energy in San Antonio created a Rate Advisory Committee to provide input to utility leadership and its governing board.